d running
out, he caught the beautiful creature by the mane. Young of years was
he, grey of colour, and very great and fair of limb; and as yet no man
had thrown foot across his back.

Then said the old man: "This horse is of the kin of Sleipnir, the
steed of Odin. Nourish him well, for he will prove the best of horses
to thee."

And with those words he vanished.

Then Sigurd called the steed Greyfell, and he proved, as Odin had
promised, the best of all horses in the world.

And after awhile Regin spoke again to Sigurd and said: "It grieves me
sore to see thee in this poor and humble guise at the court. But thou
art a brave lad, and I will tell thee where there is much wealth to be
won, as well as fame and honour in the winning of it, if thou wilt."

These words roused Sigurd's curiosity, and he asked where that wealth
might be, and who had watch and ward over it.

And Regin answered: "Fafnir is his name, and he lies not so far away,
on a lonely waste of heath. And when thou comest to that place, thou
mayest well say that thou hast never seen or heard of such abundance
of treasure."

"But I have already heard of Fafnir," said Sigurd thoughtfully. "Is
he not the most terrible of dragons, so huge and evil that no man dare
go out against him?"

"Not so," said the cunning Regin, "he is like unto other dragons of
his kind. Men make too great a tale about him, that is all. But there,
thy forefathers would have thought nothing of such a beast, but 'tis
hardly to be expected that thou, though thou be of Volsung blood,
shall have the heart and mind of those great ones whose deeds of fame
still ring throughout the lands."

Then Sigurd grew angry. "Why shouldst thou lay on me the name of
coward, who am yet but a child?" he said. "I have had as yet no chance
to win renown. And tell me, why dost thou egg me on to this so
strongly?"

"Hundreds of years ago," replied Regin, "when I was but a boy, I lived
in the house of my father Hreidmar, the king of the dwarfs. His eldest
son was named Fafnir, his second Otter, and I was the youngest and
least; for I could never wield a sword in battle, though I was a
cunning worker in iron and silver and gold. My brother Otter was
cleverer than I, for he was a great fisher, and excelled all other men
as such.

"By day he took the form of an otter, and dwelt in the river, and
brought fish in his mouth to the bank. He lived usually thus, coming
home only to eat and slumber, for on dr